Common use of Methods for Compensation Clause in Contracts

Methods for Compensation. The method for compensating Engineer for Services performed shall be specified in the Work Authorization issued pursuant to Article 5 and shall be one of the following types: (1) Cost-Plus Subject to the terms of a Work Authorization issued pursuant to Article 5 below (including any maximum amount to be paid as stated therein), the Authority will agree to pay, and the Engineer will agree to accept as full and sufficient compensation and reimbursement for the performance of all Services as set forth in this Contract and the Work Authorization, hourly rates for the staff working on the assignment computed as follows: Direct Labor Cost x (1.0 + OH Rate) x (1.0 + Profit %, in decimal form) where Direct Labor Cost equals employee’s actual annual salary divided by 2080 hours per year (subject to any applicable cap); OH Rate equals the Engineer’s most recent auditable overhead rate under 48 C.F.R. Part 31, Federal Acquisition Regulations (FAR) or otherwise approved overhead rate pursuant to this subsection 2.A; and Profit % reflects a ten percent (10%) profit. No increase shall be made to the specified profit percentage. The Direct Labor Cost caps for the classifications of employees working for the Authority as of the Contract execution of this Contract are reflected in Attachment

Methods for Compensation. The method for compensating Engineer Consultant for Services performed shall be specified in the Work Authorization issued pursuant to Article 5 and shall be one of the following types: (1) Cost-Plus Subject to the terms of a Work Authorization issued pursuant to Article 5 below (including any maximum amount to be paid as stated therein), the Authority will agree to pay, and the Engineer Consultant will agree to accept as full and sufficient compensation and reimbursement for the performance of all Services as set forth in this Contract and the Work Authorization, hourly rates for the staff working on the assignment computed as follows: Direct Labor Cost x (1.0 + OH Overhead Rate) x (1.0 + Profit %, in decimal form) where Direct Labor Cost equals employee’s actual annual salary divided by 2080 hours per year (subject to any applicable cap); OH Overhead Rate equals the EngineerConsultant’s most recent auditable overhead rate under 48 C.F.R. Part 31, Federal Acquisition Regulations (FAR) or otherwise approved overhead rate pursuant to this subsection 2.Asubarticle; and Profit % reflects a ten percent (10%) profit. No increase shall be made to the specified profit percentage. The Direct Labor Cost caps for the classifications of employees working for the Authority as of the Contract execution of this Contract are reflected in Attachment